Government to Invest Shs50 Billion in Power Infrastructure Expansion – UECCC

Government to Invest Shs50 Billion in Power Infrastructure Expansion – UECCC

Uganda is set to enhance its energy capabilities with the establishment of nine new mini hydropower stations, addressing the current unutilized power surplus, authorities have said.

Uganda Energy Credit Capitalisation Company Managing Director (UECCC) Roy Baguma Nyamutale says “if the country had adequate infrastructure to transmit generated electricity, there would be no surplus.”

However, challenges such as topographical barriers and limited funding have hindered efficient power distribution, particularly to rural areas.

Currently, Uganda generates approximately 2,048 megawatts of power against a peak consumption of 863 megawatts, resulting in an excess of about 1,185 megawatts.

“The new mini hydropower projects are strategically located in nine districts identified for their unique geographical needs,” Baguma said.

The targeted districts for these projects include Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu and Bundibugyo.

“These areas, situated below the Rwenzori Mountains, engage in agricultural activities, including the production of crops like cocoa and coffee, and require electricity to support industrialization and value addition,” Baguma observed.

UECCC will oversee the setup of the mini hydropower stations under the rural electrification initiative in a project supported by the ORIO Infrastructure Fund (now Invest International) from the Netherlands, along with financing from the Ugandan government.

“The total cost for the nine mini hydropower stations is estimated at Shs50.4 billion (€13.1 million). These facilities are expected to be operational within 24 months, generating up to 6.7 megawatts,” Baguma told Monitor on January 28.

So far, €900,000 has been allocated to initiate the project, with groundbreaking scheduled for February 1, 2025, in Mitooma District.

Authorities say the project will establish a local distribution network spanning 288 kilometers, ultimately connecting approximately 71,081 households and 2,300 small and medium-sized enterprises (SMEs) to electricity in the region.

Baguma highlighted that small electricity plants provide a stable and reliable power source for rural electrification, thereby reducing the challenges associated with transmitting electricity over long distances.

He further added that the selection of these areas was informed by their potential for high social returns in rural electrification rather than purely commercial viability.

Currently, the Uganda National Household Survey indicates that only 18 percent of Ugandans are connected to the national grid, underscoring the need for expanded access to electricity across the country.

 

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